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HomeMy WebLinkAbout2010-032 CCR i Member Tim Roche introduced the following resolution and moved its adoption: RESOLUTION NO. 2010 -32 RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY (EDA) OF THE CITY OF BROOKLYN CENTER TO ACT ON THE CITY'S BEHALF TO IMPLEMENT THE NEIGHBORHOOD STABILIZATION PROGRAM WHEREAS, Title III of Division B of the Housing and Economic Recovery Act of 2008 (Pub. L 110 -289, 1222 Stat. 2654 enacted July 30, 2009), as amended by the American Recovery and Reinvestment Act of 2009, H.R. 1 (the "Act ") makes available to qualified entities certain qualified grant funds termed Neighborhood Stabilization Program funds under the FY08 CDBG Neighborhood Stabilization Program ( "NSP "); and WHEREAS, Hennepin County ( "County ") received a grant of NSP funds directly from the United States Department of Housing and Urban Development ( "HUD ") and as a recipient of funds the State of Minnesota Housing Finance Agency ( "MHFA ") received directly from HUD, both under the Act . and WHEREAS, the City is the sub - recipient of NSP funds from County in the amount of $1,905,500.00 ( "NSP I Award ") for use within certain approved areas of the City ( "NSP Eligible Area "), as set forth in the City's agreement with County for the NSP Sub - Recipient Grant approved by the Hennepin County Board of Commissioners on November 25, 2008, pursuant to County Resolutions 08 -0518 and 09 -0115 and City Resolution 2009 -67 ( "Subrecipient Agreement"), and WHEREAS, the City has determined that it is in the best interests of the City and its citizens for the Economic Development Authority of the City of Brooklyn Center ( "EDA ") to act on behalf of the City as the City's agent in the administration, execution of documents, and carrying out of all activities as set forth in the Subrecipient Agreement and as herein set forth. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that 1. The EDA may approve up to $1,377,159.00 of the NSP I Award ( "NSP I Funds ") for purchase, rehabilitation, and resale of qualifying NSP Eligible Use Category B properties within the City's NSP Eligible Area ( "Eligible Properties"). RESOLUTION NO. 2010 -32 2. EDA will award NSP I Funds to certain developers ( "NSP I Developers ") under its Foreclosure Recovery Program for the purposes of purchasing and rehabilitating properties Eligible Properties, which constitute an eligible use of NSP funds pursuant to § 2301(c)(3)(B) of the Act. Under the Act, Category B properties must have been foreclosed upon to qualify for NSP assistance. 3. Pursuant to a April 23, 2009, HUD document titled "Guidance on NSP I- Eligible Acquisition and Rehabilitation Activities" that clarifies the use of intermediaries for acquisitions under NSP and pursuant to the First Look Program Acquisition Agreement between EDA and Twin Cities Community Land Bank LLC, a Minnesota nonprofit limited liability company ( "TCCLB "), dated 2/08/10 , EDA and TCCLB will be working with the National Community Stabilization Trust and participating sellers under a program called "First Look" ( "First Look Program ") which allows TCCLB to purchase Eligible Properties prior to such Eligible Properties being placed on the open market using standardized transaction formats and pricing models to facilitate a significant purchase price adjustment for the benefit of TCCLB. Thereafter, EDA or NSP I Developers realize the purchase price benefit when it purchases Eligible Properties from TCCLB. 4. From time to time, NSP I Developers or EDA may identify an Eligible Property through means other than the First Look Program and may acquire and rehabilitate an Eligible Property pursuant to the terms and conditions of MHFA, County, HUD, and the Act. 5. As required by paragraph five of the Subrecipient Agreement, EDA will obtain County's prior consent to any agreements funded with NSP I Funds. r February 8, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Dan Ryan and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Tim Roche, Dan Ryan, and Mark Yelich; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted.